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I 111 ,111 ! 1,l

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~uoll 011 cmt11tofl, bnnl<ortJ, dob11nturoliol1Jur, ond f!Ot/11mmnn1 no,mr:lm,.

110r1, ont ul (or Oy nurn ic) Anu lyoih

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vert ical ((Jr S totit.) An alyolr~

Tld f, J11,d y Hi 1 , j.., rna<J,, I{) n ·ViL'w and ,:1 n;1l y ½<· th,- (1n,111 r i,JI ·,1,il<·rrwnh ,,f <,rw y,·,) r ,,1·lj
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Dynsmlc or Horizontal Analysis is a time serlea analysis. Static or V9rtlcal Analy1!1 I•

catrl9d out at ono particular point of time, generally when the accounts are clo•,;d.

,,
It 'i.L
Wh at is Hori1 onta l Analy sis?
21
Wh a t is meant by Vertical Analysis?

"
l,
24
Bo th Horizontal and Ve rti cal Analy ses are com ptem entar-y ,n n at u r~
2.5
Why Verti cal Analy sis is also known as St at ic A nalysis?
Ey, p l am .

Distincti on between Ho rizonta l Analysis and Vert ical Analy&i s

Basis Horizontal Ana/ys/1

Vertkol Analy1ls
1, Period It requires comparative financial statements It require'.l a statement o! ne p~m)d
0
of two or more accounting pertods.
✓. Components It deals with same item of different periods. It deal• with cfff • .
1- -
or Items > 1
' 1 erent 1t~ms o f sartl'.? pe:fod.

-;. Information It provi des information in ab sol ute and

, percentage terms. It provides infor~ ation in p,:-rcentag'? terms.
1. UsefuJness ; it is generally-used f;, time se ries analysi~.
It is generatty used for cro.-, ~ .,.. _1 ._
'· Comparl$0n · It is a pa rt of comparison.
- -- .. -- - -- - .. - --- --- - - It is a St€ p towards compan'5Qn
.,.,. .l'lo-'-~.JI"@ ann1;11~s.

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